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<ul><li><cmsannotation type="cmsannotation" annotationid="about" comment="event_nav" text="About the Summit"><span data-til="noop">About the Summit</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="themes" comment="event_nav" text="Themes"><span data-til="noop">Themes</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="who_will_attend" comment="event_nav" text="Who will Attend"><span data-til="noop">Who will Attend</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="agenda" comment="event_nav" text="Agenda"><span data-til="noop">Agenda</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="why_attend" comment="event_nav" text="Why attend"><span data-til="noop">Why attend</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="videos" comment="event_nav" text="videos"><span data-til="noop">videos</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="contactus" comment="event_nav" text="Contact us"><span data-til="noop">Contact us</span></cmsannotation></li><li><cmsannotation type="cmsannotation" annotationid="insights" comment="event_nav" text="Insights"><span data-til="noop">Insights</span></cmsannotation></li></ul><cmsannotation type="cmsannotation" annotationid="video" comment="top_panel" text="https://slike-i.akamaized.net/3q/m9/3n3qm9l66u/720p_1600.mp4"><span data-til="noop">https://slike-i.akamaized.net/3q/m9/3n3qm9l66u/720p_1600.mp4</span></cmsannotation><br /><cmsannotation type="cmsannotation" annotationid="About the Summit" comment="about_title" text="About the Summit"><span data-til="noop">About the Summit</span></cmsannotation><br /><cmsannotation type="cmsannotation" annotationid="Description" comment="about_desc" text="The collective might of the 6.3 crore Micro, small, and medium enterprises (MSMEs) can not be overstated. They are the load-bearing pillar of the Indian, and have steadily marked their path to recovery post the pandemic. While a lot can be attributed to the government’s policy push and innovative financing solutions, technology and digital transformation has also been a game-changer. Tech has helped MSMEs resolve issues, discover new markets, deal with regulatory compliances and navigate logistical challenges to drive meaningful business growth.India’s journey towards a five trillion economy is going to be powered by these engines of innovation!At Business Insider India, we seek to highlight not just the potential, but the need for renewed thinking to supercharge the country’s MSME sector. MSME Exchange aims to provide a platform for businesses, regulators, industry leaders, experts to come together and share ideas, talk about challenges and solutions that will transform the MSME sector for decades to come."><span data-til="noop">The collective might of the 6.3 crore Micro, small, and medium enterprises (MSMEs) can not be overstated. They are the load-bearing pillar of the Indian, and have steadily marked their path to recovery post the pandemic. While a lot can be attributed to the government’s policy push and innovative financing solutions, technology and digital transformation has also been a game-changer. Tech has helped MSMEs resolve issues, discover new markets, deal with regulatory compliances and navigate logistical challenges to drive meaningful business growth.<br />India’s journey towards a five trillion economy is going to be powered by these engines of innovation!<br />At Business Insider India, we seek to highlight not just the potential, but the need for renewed thinking to supercharge the country’s <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> sector. <keyword id="4106334" type="General" weightage="20" keywordseo="msme-exchange" source="Orion">MSME Exchange</keyword> aims to provide a platform for businesses, regulators, industry leaders, experts to come together and share ideas, talk about challenges and solutions that will transform the MSME sector for decades to come.</span></cmsannotation><br /><br /><cmsannotation type="cmsannotation" annotationid="who_all_attend" comment="wwa_title" text="Who will Attend"><span data-til="noop">Who will Attend</span></cmsannotation><br /><ol><li>                    <div type="image" title="MSME investors, venture capitalists, leaders from financial institutions, think tanks and consultants" msid="101167223" hostid="261"></div></li><li>                    <div type="image" title="Ministers, Government representatives, leaders from industry bodies" msid="101167231" hostid="261"></div></li><li>                    <div type="image" title="MSME champions &amp;amp; stars in the making - startups, innovators and entrepreneurs" msid="101167252" hostid="261"></div></li><li>                    <div type="image" title="Business leaders, owners and promoters across sectors" msid="101167300" hostid="261"></div></li></ol><cmsannotation type="cmsannotation" annotationid="themes" comment="themes_title" text="Themes"><span data-til="noop">Themes</span></cmsannotation><table class="redcator-table-advance"><tbody><tr><td>Policy</td><td>FOSTERING MSMES</td><td><ol><li>Building the right environment for MSMEs to thrive.</li><li>Deliberations on policy issues, and industry-first solutions.</li><li>Creating the ecosystem for entrepreneurship in the MSME space</li></ol></td></tr><tr><td>Finance</td><td>NEED FOR INNOVATIVE FINANCING</td><td><ol><li>Making capital affordable and accessible for MSMEs across the value chain</li><li>Direction for regulation to help strengthen MSME financing</li><li>Technology as an aid for improved financing</li></ol></td></tr><tr><td>Technology</td><td>BRAVING THE DIGITAL WORLD</td><td><ol><li>Is digital transformation the answer to challenges faced by small businesses?</li><li>SaaS and MSMEs - Using innovative business models to foster digital innovation</li><li>Hear from the best in business about tech solutions for empowering and building a competitive MSME landscape</li></ol></td></tr><tr><td>Marketing</td><td>BRAND BUILDING FOR SMES</td><td><ol><li>Omni-channel marketing for MSMEs and synergising online and offline brand building </li><li>Building customer loyalty through engagement. Adding a personal connection to marketing</li></ol></td></tr><tr><td>Social e-commerce</td><td>UNLOCKING MSMEs POTENTIAL</td><td><ol><li>From interaction to transaction - unlocking e-commece potential for Indian MSMEs</li><li>Sell and earn: Making e-commerce simple and easy for new entrepreneurs</li></ol></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>   <br /><div type="embedgroup"><title>Videos</title> <div type="Youtube" id="W-ZBi_vVA-g" title="Promoting MSME Growth And Ease Of Doing Business" thumbUrl="https://i.ytimg.com/vi/W-ZBi_vVA-g/mqdefault.jpg"></div><payload><![CDATA[videos_top]]></payload></div><div type="embedgroup"><title>Videos</title> <div type="Youtube" id="W3LmGX6rfCY" title="Innovative Financing For MSMEs" thumbUrl="https://i.ytimg.com/vi/W3LmGX6rfCY/mqdefault.jpg"></div> <div type="Youtube" id="R2Dkr8KoOew" title="Tech Solutions Solving For MSME Problems" thumbUrl="https://i.ytimg.com/vi/R2Dkr8KoOew/mqdefault.jpg"></div> <div type="Youtube" id="iZAUFoKjkPc" title="MSMEs: The Backbone Of Indian Economy" thumbUrl="https://i.ytimg.com/vi/iZAUFoKjkPc/mqdefault.jpg"></div> <div type="Youtube" id="X4YJlFWiWQI" title="Empowering Women-Led MSMEs" thumbUrl="https://i.ytimg.com/vi/X4YJlFWiWQI/mqdefault.jpg"></div> <div type="Youtube" id="tWROVASCMoI" title="Empowering Small Businesses (MSMEs &amp;amp;amp;amp; Sustainability)" thumbUrl="https://i.ytimg.com/vi/tWROVASCMoI/mqdefault.jpg"></div><payload><![CDATA[videos_list]]></payload></div><br /><div type="embedgroup"><title>Agenda</title> <div type="Article" hostid="261" msid="101167582" title="Day 1" rank="1.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="101454766" title="Day 2" rank="2.0" mstype="2" mssubtype="0"></div><payload><![CDATA[agenda]]></payload></div><br /><div type="embedgroup"><title>Why Attend</title> <div type="image" title="Understand the challenges and opportunities that prevail in the Indian MSME landscape" rank="1.0" mstype="3" mssubtype="0" msid="101159833" hostid="261"></div> <div type="image" title="Engage with expert speakers, industry captains, lenders, entrepreneurs and gain insights into their journeys and the road ahead" rank="2.0" mstype="3" mssubtype="0" msid="101159819" hostid="261"></div> <div type="image" title="Listen, learn from the brightest minds working to find real life solutions – the thinking that we need to supercharge the backbone of India’s economy - MSMEs" rank="3.0" mstype="3" mssubtype="0" msid="101159803" hostid="261"></div><payload><![CDATA[why_attend]]></payload></div><br /><bulletContentEmbed name="Contact us" columns="1"><bulletContentHeading name="Contact us_head"></columnHeadThumb>Contact us</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="Contact us_body"><bulletContentRow name="Contact us_9517658605537691"><bulletContentRowHeading><bulletContentRowHead col="1">Become a Partner</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1"><strong>Maninder Kumar - Head, Brand Partnerships<br /></strong><a href="mailto:maninder@businessinsider.in"><strong>Maninder Kumar</strong></a></bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody><payload><![CDATA[contactus]]></payload></bulletContentEmbed><br /><div type="embedgroup"><title>Previous Edition Speakers</title> <div type="image" title="Sudarshan Chari" rank="1.0" mstype="3" mssubtype="0" msid="101215842" hostid="261"></div> <div type="image" title="Rahul Kothari" rank="2.0" mstype="3" mssubtype="0" msid="101215804" hostid="261"></div> <div type="image" title="Sameer Jain" rank="3.0" mstype="3" mssubtype="0" msid="101215759" hostid="261"></div> <div type="image" title="Ankur Warikoo" rank="4.0" mstype="3" mssubtype="0" msid="101215670" hostid="261"></div> <div type="image" title="T Koshy" rank="5.0" mstype="3" mssubtype="0" msid="101215630" hostid="261"></div> <div type="image" title="Rajnish Kumar" rank="6.0" mstype="3" mssubtype="0" msid="101215599" hostid="261"></div><payload><![CDATA[past_speakers]]></payload></div><br /><br /><div type="embedgroup"><title>Insights</title> <div type="Article" hostid="261" msid="96728596" title="The IPO momentum will continue in 2023 at least for small IPOs: Prime Database" rank="1.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="96618323" title="Small is the new big: SME IPOs double in 2022, while mainboard IPOs halve" rank="2.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="92055240" title="This startup has a solution for other startups suffering from funding slowdown" rank="3.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="92485293" title="MSMEs can aid waste management in India but need more hand holding" rank="4.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="93027479" title="Financial Institutions Turning Towards MSME Lending" rank="5.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="92598320" title="MSMEs run on promoter’s savings and need insurance as much as other businesses" rank="6.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="92848620" title="Fintechs are helping Indian MSMEs with their biggest challenge — data and the lack of it" rank="7.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="92994870" title="Aditya Birla group to spend ₹2,000 crore on an MSME e-commerce venture" rank="8.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="93138395" title="India’s newly digitized MSMEs need offline marketing as much as online" rank="9.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="93323188" title="This startup is building infrastructure to automate and ease the process of giving out small biz loans" rank="10.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="93457388" title="MSME credit demand jumps 60% from pre-pandemic levels – a sign of rebound in economic activity" rank="11.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="94304823" title="IIT Guwahati starts incubation centre to help its students turn entrepreneurs" rank="12.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="95780667" title="Over 50% of microbusinesses had no mechanisms to cushion Covid impact, Road to Recovery report says" rank="13.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="95142442" title="Women-led Kinara Capital raises Rs 200 cr to empower MSMEs in India" rank="14.0" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="95575042" title="Union Bank, Tata Power Renewable join hands to help MSMEs switch to solar" rank="15.0" mstype="2" mssubtype="0"></div><payload><![CDATA[insights]]></payload></div><br />

MSME Season 4

<bulletContentEmbed name="KEYNOTE ADDRESS" columns="1"><bulletContentHeading name="KEYNOTE ADDRESS_head"><div type="image" title="100153996" msid="101454763" hostid="261" sizebytes="362444"></div></columnHeadThumb>KEYNOTE ADDRESS</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="KEYNOTE ADDRESS_body"><bulletContentRow name="KEYNOTE ADDRESS_8383652185413475"><bulletContentRowHeading><bulletContentRowHead col="1">MSMEs: The backbone of Indian economy</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1"><strong>Procurement, exports and enterprises are three crucial pillars for fostering the growth of small and medium size businesses. How can MSMEs boost exports and what more does the government need to do to support this sector?</strong></bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody></bulletContentEmbed>

Day 2

<bulletContentEmbed name="INAUGURAL ADDRESS (POLICY)" columns="1"><bulletContentHeading name="INAUGURAL ADDRESS (POLICY)_head"><div type="image" title="100153980" msid="101167632" hostid="261" sizebytes="345127"></div></columnHeadThumb>INAUGURAL ADDRESS (POLICY)</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="INAUGURAL ADDRESS (POLICY)_body"><bulletContentRow name="INAUGURAL ADDRESS (POLICY)_9886212833743733"><bulletContentRowHeading><bulletContentRowHead col="1">Promoting <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> growth &amp; ease of doing business</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1"><strong>Small businesses are the growth engine for India’s economy. We shine the spotlight on the policy push to foster ease of doing business by providing faster avenues of credit and schemes to support the MSME sector. And more importantly, the need for digitising the lending process to enhance the ecosystem and overcome challenges.</strong></bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody></bulletContentEmbed><br /><bulletContentEmbed name="KEYNOTE ADDRESS" columns="1"><bulletContentHeading name="KEYNOTE ADDRESS_head"><div type="image" title="100153980" msid="101167642" hostid="261" sizebytes="345127"></div></columnHeadThumb>KEYNOTE ADDRESS</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="KEYNOTE ADDRESS_body"><bulletContentRow name="KEYNOTE ADDRESS_2649762537898081"><bulletContentRowHeading><bulletContentRowHead col="1">Fuelling MSME growth for $5 trillion economy</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1"><strong>India’s journey towards a five trillion economy is going to be powered by small and medium businesses – these engines of innovation. There is a collective need to ideate, innovate and create tools that will boost the MSME landscape for the next decade.</strong></bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody></bulletContentEmbed>

Day 1

The world loves jargon. In this case, it’s the latest one and much touted new kid on the block in the lending segment -- ‘Buy Now Pay Later’ (<keyword id="9522245" type="General" weightage="80" keywordseo="bnpl" source="Orion">BNPL</keyword>). It sure is not a coincidence that almost every Indian business media has written about this topic in the past few weeks, accelerated by the PR [public relations] blitzkrieg of the lending players, and some of their (potential) advertising spends being a motivator too.<br /><br />Is BNPL much ado about nothing ? Is this lending practice contemporary or is it just the newly coined terminology ? Isn’t the practice the same as the credit system we saw even as early as a few decades ago; the one that our old-fashioned uneducated mom-n-pop kirana store owner gave us as an option -- to buy through the month, and pay as a lump sum later in the subsequent month? His cost of such funding-the-customer was built into expenses (from his sales margins). He did not have any calculator or computer to store CRM [customer relationship management] or any customer database. The only cloud he knew and that existed then was the one above in the skies. There were not even landlines available (easily), let alone the PoS [point of sale] solutions. And more importantly, his customers rarely defaulted in repayments.<br /><br />So why is this sudden chatter about BNPL now? Why is so much private-capital chasing fintech BNPL players globally? Why are the banks, which loved their own credit cards, suddenly pushing for BNPL products too? Why is merchant acquisition becoming the hottest skill in the financial services sector?<br /><br />For a country with over 1.3 billion population, there are only 30 million unique credit card holders in <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> (about 3% of total banked population). This huge gap is the actual business opportunity to provide BNPL solutions for various consumer segments. More importantly, the younger consumers seem to prefer BNPL, instead of credit cards (their high interest charges are seen as a deterrent). It’s then no-guess why apart from the purely digitally-led fintech players in India, traditional banks too have entered this vertical.<br /><br />The success of BNPL in the Indian context can be attributed to the fact that it offers formal credit in an easy-to-access way. It is also known as point-of-sale loans. In general, the retailer/merchant pays the BNPL provider a low single-digit percentage of the transaction value. This is equally a product promotion push to increase revenues. The banks and highly-funded fintechs have an advantage with cost of funding, while the banks have that historic funding-cost-advantage, techfins and fintechs (which have large capital to sign off) use the might of their large capital to acquire consumers; and to change consumer behaviour over a long period of time, by using their capital, even if debt markets are as shallow and as conflicted as our market (structurally in absence of deep domestic debt market, banks being a large proportion lender as well as provider of debt to non-banks is the conflict of interest). Hopefully the regulator would indicate their view on this subject, just to align the industry players in terms of regulatory thinking, before this segment grows fast, so that any business model steering could be done by the industry in time, saving precious capital, consumption trends and regulatory worries, if any.<br /><br /><strong>Can BNPL be inclusive ?</strong><br /><br />With more keypad literate Indians than literate Indians now, wide availability of mobile services along the length and breadth of the country and lower-priced internet access, digital finance has never looked better before. The pioneering efforts by India with its <keyword id="6367533" type="General" weightage="20" keywordseo="jam" source="Orion">JAM</keyword> trinity [JanDhan-Aadhaar-Mobile] to bring banking access with secured identity and digital to every citizen is a global first. The initiatives such as ‘Digital India’, ‘Make in India’, ‘Startup India’ have inspired many youngsters to develop innovative ideas to solve real-life-consumer-issues. <br /><br />The basics of financial inclusion is to make sure that the consumers have access and choice of products that suit their needs. The brick and mortar distribution of conventional finance has not reached the nook and corner of the country. Digital channels have started making access to finance, especially credit, as easy as searching for something on Google and language no bar. The COVID lockdown fast-paced the digital adoption in almost all consumer segments, including those who were not digitally-led before. Online banking, app usage, and online commerce increased at a rapid pace. Many of these consumer behaviour would have become a habit and won’t make consumers go back to non-digital pre-covid behaviour. All these also helped in the BNPL growth in the past few months, spurred by a plethora of merchant offers across product categories.<br /><br />The larger opportunity set could be using BNPL products for livelihood-enhancing business-productivity needs. This could mean looking at business users like the gig economy and small and medium-sized enterprises (SMEs) stakeholders. Will we see lending players offering BNPL to <keyword id="12386350" type="General" weightage="20" keywordseo="sme-/-msme-/-psl" source="Orion">SME / MSME / PSL</keyword> segments with a win-win proposition ?<br /><br /><strong>It is only about “ity”s</strong> <br /><br />If extending credit is filtered on the basis of consumption, the risk parameters and its consequent lending would differ. Consumption itself is not a bad aspect. Responsible consumption is an ideal expectation from lenders. But lenders can’t judge consumer behaviour, but can very well decide if they want to lend to such consumers’ consumption patterns.<br /><br /><ul><li>Vanity consumption : Financing done for products bought or services used to give instant gratification. (Eg: Botox facial uplift treatment, bridal makeup. ) The challenge for this category of purchase is that the end-use is for “wants” and not “needs”. Absolute critics would even call it “unwanted wants”!<br /></li><li>Sanity consumption : Financing done for products or service acquisition now, by customers who anyways have that affordability-capability but using it more for cash-flow management. (Eg: Consumer electronics, holidays, etc.) While these purchases using BNPL could be well within the budget of the buyer, studies have shown that the objectivity to stick to a financial wellness goal could be shaken, if the BNPL offers are tempting enough to buy yet another product or service. It would be beneficial for the industry at large to come together to build-in the concept of financial wellness assistance for its users<em>. </em>This would help the users conform to their financial plan and not to have any undue credit exposure that hurts their credit scores. And such hand-holding would go a long way in building consumer trust and to reposition BNPL as a safe practice.<br /></li><li>Reality consumption : Anything that can add value to the real economy borrowers, be it for individuals or businesses, and done with responsible finance framework and responsible-credit behaviour would be long-term positive-trust-accretion to the overall industry. (Eg: business or livelihood enhancement loans)<br /></li></ul><strong>Not eating itself for lunch<br /></strong><br />While BNPL surely is the flavour of the season, rational product development and prudent growth would build consumer trust. Valuations alone can’t drive up consumer trust, while they might drive up short-term public hype. Industry players have to build a profitable business model and sustainable service delivery (expectations), as they launch and/or scale BNPL products. If lending is driven well with adequate technology to understand risks, coupled with relevant merchant-partnerships on-the-ground, this can be a good source of financing for the consumers. Reckless lending through BNPL just to grow the AUM [assets under management] or to showcase the business pass-through that could drive-up potential valuations, will ensure that at some point that music will stop. Then that silence will be eerie.<br /><br />With so many conversations and coverage, hopefully BNPL should <em>not</em> become the next four-letter foul-word in the financial world. The better 4-letter-words that the financial sector does well to remember: “Lend”, “tech”, “risk”, “care”. If the industry does not offer improved socio-economic impact with BNPL, it might as well be called ‘Banal Nouveau Product (for) Lending’.<br /><br />After all, there is no free lunch. Someone has to pay for it! <br /><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/tech-mahindras-attrition-rate-is-nearly-twice-that-of-tcs/articleshow/87259727.cms">Tech Mahindra's attrition rate is nearly twice that of TCS</a><br /></strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/all-bitcoin-price-estimates-for-2021/articleshow/87259108.cms"><strong>Bitcoin’s rally is far from over — these analysts are betting on the world’s largest cryptocurrency to more than double in value by the end of year</strong></a>

OPINION: The next four-letter word taking the world of finance by storm

The <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> on Wednesday expanded the scope of the ₹4.5 lakh crore <keyword id="9254513" type="General" weightage="20" keywordseo="Emergency-Credit-Line-Guarantee-Scheme" source="Orion">Emergency Credit Line Guarantee Scheme</keyword> (<keyword id="9254383" type="General" weightage="20" keywordseo="ECLGS" source="Orion">ECLGS</keyword>) to support micro, small and medium enterprises facing liquidity issues due to the COVID-19 pandemic. The validity of the scheme has been extended by another six months till March 31, 2022, the ministry said in a statement.<br /><br />The government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses, it added.<br /><br />"With a view to support various businesses impacted by the second wave of <keyword id="8764728" type="General" weightage="20" keywordseo="covid-19" source="Orion">COVID 19</keyword> pandemic, it has been decided to extend the timeline of ECLGS till March 31, 2022, or till guarantees for an amount of ₹4.5 lakh crore are issued under the scheme, whichever is earlier," the ministry said.<br /><br />Further, it said, the last date of disbursement under the scheme has also been extended to June 30, 2022.<br /><br />The modifications have been made in the scheme to enable support to businesses impacted by the second wave of COVID, it said, adding existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher.<br /><br />Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of up to 30 per cent of their credit outstanding as of March 31, 2021, it said.<br /><br />Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support of up to 40 per cent of their credit outstanding as of March 31, 2021, to the maximum of ₹200 crore per borrower.<br /><br />Incremental credit can be availed within these limits by existing ECLGS borrowers whose eligibility increased because of a change in cut-off date to March 31, 2021, from February 29, 2020.<br /><br />Accordingly, "borrowers who have availed assistance under ECLGS and whose credit outstanding as on March 31, 2021, (excluding support under ECLGS) is higher than that on February 29, 2020, shall be eligible for incremental support within the cap stipulated under ECLGS 1.0, 2.0 or 3.0.<br /><br />"The modification introduced would ensure that businesses adversely impacted by the second wave of COVID-19 get enhanced collateral-free liquidity. Further, this provides much-needed support to all the ECLGS borrowers (which mainly consist of <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> units) in time for the busy / festival season," the ministry said.<br /><br />The scheme since its launch in May last year has extended relief to over 1.15 crore MSMEs and businesses, it said, adding it has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the COVID-19 pandemic.<br /><br />As of September 24, 2021, loans sanctioned have crossed ₹2.86 lakh crore under the scheme and out of total guarantees issued, about 95 per cent of the guarantees issued are for loans sanctioned to MSMEs.<br /><br />The Finance Ministry in May expanded the scope of the ₹3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants. Besides, the validity of the scheme was extended by three months to September 30 and or till the amount was disbursed.<br /><br />The interest rate on these loans has been capped at 7.5 per cent, which means the banks can offer loans less than this ceiling. <br /><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/xiaomi-11-lite-ne-5g-with-120hz-display-snapdragon-778g-and-5g-support-launched-starting-at-26999/articleshow/86612169.cms">Xiaomi 11 Lite NE 5G with 120Hz display, Snapdragon 778g and 5G support launched starting at ₹26,999</a><br /></strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/some-domestic-flights-tickets-may-get-expensive-soon-as-government-mulls-removal-of-airfare-cap/articleshow/86611240.cms"><strong>Some domestic flights tickets may get expensive soon, as government mulls removal of airfare cap</strong></a><br />

Finance Ministry extends Emergency Credit Line Guarantee Scheme till March 2022

In an uncharacteristic response from an industry body which tend to be mellow in their take on government policies, the Federation of Associations in the Indian Tourism &amp; Hospitality (<keyword id="6389686" type="UNKNOWN" weightage="20" keywordseo="faith">FAITH</keyword>), said on Sunday that the Indian tourism industry has "gone into a state of disbelief and shock".<br /><br />This is the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India.<br /><br />  <div type="Article" hostid="261" msid="75790707" title="Lockdown 4.0 ⁠— India issues new guidelines allowing states to decide the red, green, and orange zones" mstype="2" mssubtype="0"></div><br /><br />"The industry has gone numb from a lack of any umbrella direction from the government or without any fiscal &amp; monetary support," it said. The industry body said, "Indian Tourism industry goes into a state of shock and disbelief as there were no announcements to support tourism, 10 weeks of constant discussions come to a naught and industry has gone directionless".<br /><br />With no visibility of cash inflows the Indian tourism industry is now looking at large scale bankruptcies, business closures which will lead to job losses across cities, towns and hinterlands of India. This has the potential to set back the Indian tourism, travel and hospitality industry by many years, it said.<br /><br />The body said that the Indian tourism industry was looking forward to deep set of survival measures for tourism from the Rs 20 lakhs crore package announced over 5 days, which however were not addressed.<br /><br />The Indian tourism, travel and hospitality sector impacts almost 10 per cent of GDP through its direct and indirect impact. It has already seen over one quarter of accumulated losses which began from February onwards.<br /><br />There is no cash inflow expected for many quarters over FY20-21 as the key segments of the Indian tourism economy will be down. The international inbound tourists, inbound and VFR - (visiting friends and relatives) and the outbound travel will remain mostly non-performing due to international flight restrictions and tragic impact in most key markets tourism markets of India, the association said.<br /><br />"Domestic travel and corporate travel within the country may slightly ease up post lockdown but will be highly restricted due to fear of travel among elders and children, the new social distancing norms, corporate travel freeze and the closure of the holiday season which will impacting all leisure, adventure, heritage, spiritual, cruise and<br />niche tourism segments," it said.<br /><br />The meetings incentives exhibitions &amp; events segment will be severely impacted due to the meeting size restrictions.<br /><br />Consequently all tourism service providers, the hotels, travel agents, tour operators tourist transporters, restaurants, guides will be compromised and the tourism industry of India will be operating with extreme under capacities making most tourism businesses unviable on a cash operating basis.<br /><br />To prevent this and to ensure survival, FAITH had proposed a dedicated interest and collateral free long term fund for paying salaries and operating costs and for a minimum of 12 months of complete waiver of fixed central &amp; state statutory and banking liabilities without any penal or compounding interest which have not been addressed.<br /><br />The proposed MSME fund with its many underlying restrictions may have a very limited usage.<br /><br />FAITH &amp; its ten member associations (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) had been constantly dialoguing with all factions of the government over the past 10 weeks the PMO, ministries of Finance, Commerce , Aviation, and Tourism, with RBI, with all 28 Chief Ministers, Niti Aayog and with the Empowered Group 6.<br /><br />Indian tourism travel and hospitality impacts 10-12 per cent of India's employment which covers almost 5 crore plus direct and indirect jobs.<br /><br /><strong>SEE ALSO:</strong><br /><a href="https://www.businessinsider.in/business/corporates/news/indian-firms-can-now-directly-list-in-foreign-markets-there-are-a-few-more-big-changes-to-companies-act/articleshow/75785648.cms">Indian firms can now directly list in foreign markets – there are a few more big changes to Companies Act</a><br /><br /><a href="https://www.businessinsider.in/politics/policy/news/india-will-merge-some-government-companies-and-privatise-some-cpse/articleshow/75785709.cms">India will reduce the number of central government companies⁠— some of them will get bigger and some will be sold to private players</a><br /><br /><a href="https://www.businessinsider.in/finance/news/india-puts-a-pause-on-new-bankruptcy-cases-for-a-year-and-other-changes-that-will-cap-the-rise-in-bad-loans/articleshow/75785508.cms">India puts a pause on new bankruptcy cases for a year ⁠— and other changes that will cap the rise in bad loans</a><br />

'Indian tourism industry is in a state of shock and disbelief'

Mumbai, Apr 1 () Over 300 economists, academics, social scientists and past civil servants have urged the prime minister and chief ministers to take urgent steps to ameliorate the impact on the Covid-19 lockdowns on the vulnerable sections by increasing their monthly sustenance support to at least Rs 6,000 per family.<p> Those who made the collective appeal to the prime minister and the chief ministers under the aegis of the Delhi-based Indian Society of Labour Economics include Abhijit Sen, Jean Dreze, Prabhat Patnaik, Deepak Nayyar, Ajit Ghose, Jayati Ghose, SK Thorat, Rakesh Mohan, Ashok Gulati, Bina Agarwal, NC Saxena, Sujata Rao and Meghnad Desai, among others.</p><p> These economists, social scientists, leaders of labour organisations and former civil servants have appealed for "increasing the minimum central and state contribution to at least Rs 6,000 per month to each woman member of the family in the next three months and the Centre bearing the major portion".</p><p> They also said all the states should ensure that at least 10 kg free rations per person per month, along with other necessary items, is available for all eligible households, which means three-four-fold increase of the current short-term relief package for impacted informal workers.</p><p> Welcoming the Centre's Rs 1.7 trillion package and various measures taken by the states, the signatories to this letter, a copy of the same with the , they have proposed urgent additional measures that are required to address the critical gaps that exist in the short-term relief measures announced so far by increasing the package by three-four times.</p><p> The letter says "cash transfer of Rs 6,000 per month to each household that doesn't have a person in formal employment or is not a tax-payer. The estimated burden of about Rs 3,60,000 crore for three months to be borne principally by the Centre but shared between the Centre and states".</p><p> On the food and subsistence requirements, they point out that 10 kg cereals and other essential items per person per month free of cost through the PDS and food for the homeless and most distressed, to meet the basic food requirement of the poor in the informal economy who have lost jobs and incomes.</p><p> They also called for ensuring the contract employees are retained by public sector units and also pay them full wages. There also has to be a scheme to compensate the unorganised and MSME sector workers by paying them wages during the lockdown.</p><p> They have called for providing ex-gratia payments and to ensure that no needy person/household remains outside the social protection net being created to cope with the current calamitous conditions.</p><p> On those fleeing the cities and got stranded midway- there are 40-50 million seasonal/circular migrants in construction, manufacturing, transport/travel industries and are currently without employment and want to head back to their villages, with their accompanying family members and warned that the numbers will increase as the lockdown extends.</p><p> They also called for measures to ensure safe harvesting and post-harvesting activities in villages by procurement at MSP and enhanced storage by the FCI and state agencies to prevent a famine-like condition from evolving.</p> Finally, they also appealed for ensuring the safety, security and welfare of the front-line workers, including those engaged in essential services on behalf of governments.  BEN  MKJ

Over 300 economists, social scientists seek 4-fold hike in payout to vulnerable

<ul><li><keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> opened at 61,812, down by 0.3% or 168 points, while <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> opened at 18,359, down by 0.3% or 51 points.</li><li>Adding to the volatility today is the weekly expiry in the futures and options segment.</li><li>While markets have remained volatile this entire week, Sensex has managed to gain 2.36% in the last five days, thanks to <a href="https://www.businessinsider.in/stock-market/news/fpis-pour-28888-crore-into-equities-in-the-first-fortnight-of-november/articleshow/95560705.cms">foreign investor inflows</a> and the October inflation print which came in at 6.77%, falling from 7.41% in September.</li></ul>Indian benchmark indices Nifty50 and Sensex opened in the red on Thursday, tracking negative cues from the global markets including SGX Nifty.<br /><br />Sensex opened at 61,812, down by 0.3% or 168 points, while Nifty50 opened at 18,359, down by 0.3% or 51 points.<br /><br />On Wednesday, Sensex closed 107 points higher at 61,980 while Nifty50 closed six points higher at 18,409 after <a href="https://www.businessinsider.in/stock-market/news/sensex-ends-107-points-higher-after-touching-a-new-high-in-intra-day-trade/articleshow/95559654.cms">hitting all-time highs</a> during the day. The SGX Nifty, which is an early indicator of Nifty50’s performance, was down 88 points ahead of the markets opening for the day.<br /><br />Adding to possible volatility today is the weekly expiry in the futures and options segment.<br /><br />While markets have remained volatile this entire week, Sensex managed to gain 2.36% in the last five days, thanks to <a href="https://www.businessinsider.in/stock-market/news/fpis-pour-28888-crore-into-equities-in-the-first-fortnight-of-november/articleshow/95560705.cms">foreign investor inflows</a> and the October inflation print which came in at 6.77%, falling from 7.41% in September.<br /><br /><strong>Stocks to watch out for<br /></strong><br />One 97 Communications: SoftBank is planning to offload a stake worth $215 million in Paytm as the <a href="https://www.businessinsider.in/stock-market/news/nykaa-policybazaar-paytm-among-nine-companies-whose-ipo-lock-in-period-ends-in-november/articleshow/95445657.cms">lock-in period for pre-IPO investors ends</a>, according to a Bloomberg report. In total, 29 million shares are to be made available in a price band of ₹555-601 per share, which is at a discount of 7.7% to Wednesday’s closing price.<br /><br />Tata Power: Its subsidiary, Tata Power Solar Systems, has tied up with Union Bank of India to increase rooftop solar adoption in the micro, small and medium enterprises (MSME) sector.<br /><br />Tata Motors: Thierry Bollor, the CEO of Jaguar Land Rover has resigned. Adrian Mardell will be the interim CEO.<br /><br /><strong><keyword id="123399" type="General" weightage="20" keywordseo="us-markets" source="Orion">US markets</keyword> edge lower<br /></strong>US markets closed lower on concerns of poor consumer spending inflicted by high inflation. This comes after retail giant Target reported a sudden 52% fall in its profit as consumer spending declined before the crucial Christmas season indicating a softer holiday season. <br /><br />S&amp;P 500 declined 0.83% while Dow Jones Industrial Average fell 0.12%. The tech-heavy Nasdaq Composite fell 1.54% at close on Wednesday.<br /><br /><strong><keyword id="35189" type="General" weightage="20" keywordseo="asian-markets" source="Orion">Asian markets</keyword> in the red<br /></strong><br />In Asia, markets traded in the red, with Japan’s Nikkei 225 losing 0.4%, Hong Kong’s Hang Seng index declining 2.37%. South Korea’s KOSPI shed 1.04%, and China’s Shanghai Composite declined 0.68%.<br /><br />“Asian stocks were mixed on Thursday as investors tried to assess the outlook for Federal Reserve policy following stronger-than-expected retail sales data and as a closely watched section of the US yield curve remained near levels not seen in four decades,” said Deepak Jasani, head of retail research at HDFC Securities.<br /><br />Analysts expected a weak opening on Thursday because of global markets, geopolitical concerns, rising Covid-19 cases in China and profit booking in some pockets of the home markets due to exorbitant valuation. <br /><br />“The market is likely to struggle in early trades Thursday, tracking weakness across the Asian indices after US gauges faltered in overnight trades. The escalating war situation in Ukraine is making investors nervous as its ramifications are huge on global trade,” said Prashanth Tapse - research analyst, senior VP (research) at Mehta Equities. <br /><br />Meanwhile, crude oil prices have fallen on concerns over demand given Covid-19 cases have been rising in China along with geopolitical tensions.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top gainers<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sun Pharmaceuticals <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.10%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Motors <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.46%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Enterprises <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.77%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Steel<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.64%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cipla<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.70%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindalco Industries <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.51%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.63%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Eicher Motors<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.44%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.41%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Grasim Industries <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.11%<br /><br /></td></tr></tbody></table><em>Source: NSE, as of 9.20 a.m., November 17, 2022</em><br /><br />SEE ALSO:<a href="https://www.businessinsider.in/stock-market/news/fpis-pour-28888-crore-into-equities-in-the-first-fortnight-of-november/articleshow/95560705.cms">FPIs pour ₹28,888 crore into equities in the first fortnight of November</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/whenever-small-caps-trade-at-a-discount-to-nifty-they-have-given-outsized-returns-incred-wealth/articleshow/95536784.cms">Whenever small caps trade at a discount to Nifty, they have given outsized returns: InCred Wealth</a><br /><a href="https://www.businessinsider.in/finance/news/remain-watchful-is-rbi-governors-advice-to-heads-of-banks-amid-global-headwinds/articleshow/95569579.cms">'Remain watchful' is RBI Governor's advice to heads of banks amid global headwinds</a><br />

Indian markets open in the red amid weakness in global markets – Paytm, Tata Power among stocks to watch out for

New Delhi, Mar 3 () The Cotton Corporation of India (CCI) from Tuesday started selling its stock to bulk buyers at discounted rates of up to Rs 5,000 per candy in a move to help the industry get raw material at cheaper prices.<p> State-run CCI in an order said the discount is being offered on a purchase up to 15,000 bales of cotton to MSME spinning mills, KVIC (Khadi and Village Industries Commission) units and cooperative spinning mills. </p><p> Industry players said that discounted rates will give much-needed boost to the already raw cotton starved Indian industry which has been reeling under severe pressure due to the high raw cotton prices.</p><p> The CCI is selling cotton pertaining to crop year 2018-19. The discount scheme will be application from March 3 till April 30 this year, the order said.</p><p> The CCI is offering a minimum discount of Rs 3,200 per candy for the purchase of 100 bales per day and maximum discount of Rs 5,000 per candy for the purchase of over 4,500 bales per day especially to MSME spinning mills, KVIC units and cooperative spinning mills.</p><p> However, for other bulk buyers, the minimum discount has been fixed at Rs 3,200 per candy for a purchase of 500 bales per day, while maximum discount of Rs 5,000 per candy for purchasing more than 1 lakh bales per day, the order said.</p><p> The discount scheme is applicable on CCI processed stock and is in supersession of bulk incentive scheme for stock of 2018-19 season, the order added.</p><p> Commenting on the development, Confederation of Indian Textile Industry (CITI) Chairman T Rajkumar said sale of cotton at a discounted rate will give a much-needed boost to the already raw cotton starved Indian industry which has been reeling under severe pressure due to the high raw cotton prices and declining export of cotton yarn. </p><p> He also said the move will really give an impetus to the industry to regain and increase its share of exports in international trade.</p><p> The industry body said export of cotton yarn in the current fiscal declined by more than 30 per cent due to which there was a very limited demand of raw cotton which discouraged not only the cotton spinners but also CCI, which could not sell the cotton procured in the 2018-19 season to the tune of 9 lakh bales on drop in cotton prices.  </p><p> This year, the CCI has already procured over 60 lakh bales of cotton at a minimum support price, the cost of which is much higher than the market price. </p><p> Hence, the CCI has been quoting higher prices than the market price and practically there was no off-take of cotton from the already cash-starved cotton yarn industry due to the low demand in domestic as well as global market, Rajkumar added.  RSN LUX</p>  MR

CCI to sell cotton stock at discount to bulk buyers; industry hails move

Mumbai, Mar 13 () The Reserve Bank may go for a rate cut before the next scheduled policy review on April 3, and is likely to slash rates by 0.75 percentage point in 2020 as inflation ebbs, a foreign brokerage said on Friday.<p> Central banks have been cutting rates and injecting liquidity to counter economic slowdown because of the coronavirus pandemic.</p><p> "We expect the RBI MPC (monetary policy committee) to cut rates by 25 per cent before or on April 3 with inflation having peaked," Bank of America Securities said in a report released a day after official data said there has been a cool-off in inflation to 6.6 per cent in February.</p><p> It added that the RBI, which is contract-bound to ensure inflation is between 2-6 per cent, will also take the call on a rate cut on falling global growth and further easing by the US Fed on top of the surprise 0.50 per cent cut.</p><p> "An immediate RBI rate cut will lower lending rates for banks' MSME/retail/mortgage loans before the 'busy' industrial season ends in March," the brokerage said.</p><p> Its peer Barclays had also opined on Thursday that there can be a possibility of a rate cut between the policies.</p><p> After the cut ahead of the April 3 policy or on that date, RBI will deliver another rate cut at the June review and go for a pause after cutting again in October, it said, lowering its inflation expectations for FY21 to 4 per cent from 4.8 per cent earlier. </p><p> BofA said the core inflation is well contained at 3.6 per cent as per the latest data print.</p><p> On growth, which seems to be accorded priority by the central bank as seen in the actions over the last one year, the brokerage said the March quarter GDP expansion will come at an "anemic" 4.3 per cent with downside risks.</p><p> It said that the growth number for FY21 will come at 5.4 per cent, up from the 4.8 per cent in FY20. </p><p> Amid talk of a review of the flexible inflation targeting framework, it said the revised contracts will introduce growth and financial stability as co-objectives of monetary policy along with price stability.</p> The brokerage also said that there is a likelihood of a 0.3 per cent slippage in the 3.5 per cent fiscal deficit target set in the budget, but underlined that this is below the 4.5 per cent long-run average.  AA  MRMR

RBI may go for rate cut before next scheduled policy, says brokerage

Mumbai, Mar 4 () Banks can save up to Rs 7,400 crore in CRR benefits under the new dispensation of targeted lending using their cash reserve ratios, and the incremental credit flow through this can be Rs 1.85 lakh crore, helping them earn Rs 480 crore in additional profits in FY21, SBI Research said.<p> The RBI, at the previous monetary policy review on February 6, adopted a policy tool that the European Central Bank had deployed during the last sovereign credit crisis, by allowing banks to lend against their CRR to three targeted segments -- retail loans to the auto, housing and MSME sectors.</p><p> The monetary authority had also announced long-term repo operations (LTROs) to the tune of Rs 1 lakh crore to ensure long-term durable liquidity, despite the system being awash with Rs 3 lakh crore of surplus liquidity.</p><p> Accordingly, the RBI has already carried out three LTROs of Rs 25,000 crore each beginning with the third Monday of February with huge success.</p><p> "Using January 2020 sectoral data, we estimate that banks till July 31 can lend up to Rs 1.85 lakh crore to these specified sectors and can save around Rs 7,400 crore if credit grows at 9 percent for housing, and 5 percent for vehicle and MSME loans, as CRR benefits," SBI Research said in a note.</p><p> While banks can save this much, the capital charge on Rs 1.85 lakh crore of additional lending will be around Rs 15,000 crore, while the Rs 7,400 crore savings can have positive impact on banks' profitability and cost of deposits.</p><p> "We believe that banks' profitability will increase by Rs 480 crore (at 6.5 percent G-sec yield) while the cost of deposits may also be impacted by 2-3 bps. This excellent step if extended to December 31, 2020 (as the second half is more productive in lending due to festive season) can have a larger impact on the banking sector," it added.</p><p> The LTROs can bring down the cost of funds for banks who can now borrow up to three year funds at the repo rate.</p><p> However, compared to the overall deposits of Rs 132 lakh crore as of February 14, 2020, this amount of Rs 1 lakh crore is not even 1 per cent, so the impact on bank's cost of funds will be miniscule, up to 1-2 bps.</p><p> But if the RBI reduced the CRR by 1 per cent, it can release around Rs 140,000 crore lendable funds for banks, which can be used for lending to the desired sector, helping them lower their overall lending rates as the cost of funds will decline and also result in improved profitability for the banking sector, notes the report.</p><p> Terming LTROs and lending against CRR as "more a signalling device" than actual measures to lower credit cost to the economy, it said the RBI move to resort to these unconventional methods to provide durable liquidity is  a clear example of using "constrained discretion" in monetary policymaking.</p><p> The new dispensation goes beyond the textbook prescription of rate cuts to address sectoral imbalances and declining credit growth, the report said.</p> Empirical evidences suggest that the opportunity to substitute long-term central bank liquidity for short-term liquidity enhances monetary transmission. It also benefits larger borrowers more and does not lead banks to increase their lending to riskier firms.  BEN  ABMABM

Banks can save Rs 7,400 cr from lending against CRR, earn Rs 480 cr in additional profits: Report

New Delhi, Apr 1 () Apparel exporters on Wednesday sought Prime Minister Narendra Modi's intervention in providing a specific financial stimulus package to protect the industry and its workers who are struggling to deal with the impact of COVID-19 pandemic.<p> In a letter to the prime minister, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that unless the government immediately announces a fiscal stimulus package, the apparel export sector, which employs 12.9 million workers, will "die a slow death".</p><p> Elaborating the situation of the exporters, Sakthivel said that overseas buyers and buying houses are either cancelling or postponing confirmed export orders and are also holding back or indefinitely deferring the payment for goods already shipped/ ready to ship and asking for hefty discounts.</p><p> "Apparel industry is a seasonal industry and the products are similar to a perishable commodity as they are a tailor-made, design-specific, fashion-specific export and any cancellation this year may be redundant and have little or no salvage value next year," he said.</p><p> The cancellations, deferments and postponement of shipments have resulted in packing credits being eroded, and impacted the fund-liquidity position of the exporters, which is in a precarious condition, as the cash flows have completely stopped, he added.</p><p> He said that about 70 per cent of the apparel units are in the MSME sector and it is imperative to note that the member-exporters strictly comply with national and international norms.</p><p> ''In the apparel sector, labour costs form the single largest component of product costs where workers' wages are in the range of 25-30 per cent of the product cost as opposed to the industry norm of 7-8 per cent.</p><p> "We operate under extremely competitive margins in the range of 3-4 per cent, and are completely dependent on export benefits granted by the government," he said.</p><p> He urged the government to announce several measures including payment of wages of workers through ESI funds or through Atal Bimit Vyakthi Kalyan Yojana (ABVKY) Scheme; and payment of employer's portion of EPF for the months of March/April/May/June for all companies.</p> It also sought contribution by the government towards salaries of employees for six weeks, and deferment in the payment of GST dues for a period of three months without penalty.  RR  SHW MRMR

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